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Lower power prices good for families
18 April 2013
Lower power prices good for families
The CTU welcomes new thinking from the Labour and Green Parties today to reduce power prices. It is long overdue.
Bill Rosenberg, CTU Economist says "New Zealand residential electricity consumers have suffered from the reliance on an electricity 'market' which has failed to deliver low cost electricity for much too long now. Low income families lose the most to power companies as a proportion of their incomes. We welcome these policies to lower the high cost of electricity. Just as we support fair wages we welcome initiatives that will ease the burden of unfair prices on low-income families and reduce inequality."
"We support the concept of a single buyer for electricity which negotiates with the power generators to get good prices, and then averages the costs."
"We also support the proposal for a low cost block of electricity for all households given that it is low income households that suffer most from high electricity prices. Electricity is a necessity for families and high electricity prices are disproportionately hard on low income families."
Bill Rosenberg says "if privately owned electricity companies complain about this, it gives more reason to have the electricity system in public ownership. They have been fooling themselves if they think that the excess profits they have been earning can carry on forever without regulation. They just need to look at other countries to see plenty of precedents for the kind of changes that Labour and the Greens are proposing."
| Decile (2010) | Household income | Household energy as proportion of household expenditure (including interest payments) |
| 1 | Under $20,000(3) | 6.3% |
| 2 | $20,000 to $28,899 | 6.8% |
| 3 | $28,900 to $39,699 | 5.7% |
| 4 | $39,700 to $51,399 | 4.9% |
| 5 | $51,400 to $63,199 | 4.7% |
| 6 | $63,200 to $76,099 | 4.2% |
| 7 | $76,100 to $92,199 | 4.3% |
| 8 | $92,200 to $110,799 | 4.0% |
| 9 | $110,800 to $147,699 | 3.4% |
| 10 | $147,700 and over | 3.3% |
ENDS
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